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The first step in the authentication process is the client to send a logon request to the server.
Then the server sends a challenge to the client. The challenge in general is a random string.
Client receives the challenge, and it should compose a response. The response is generated by the UniKey info, user-credential and the challenge. The algorithm is based on HASH algorithm, so it is in-revertible.
Response = HASH_ALGORTHM( UniKey Info, User Credential, challenge)
Now, the server gets the response and it can retrieve the corresponding info from the user database. Then the server does the same computation again, and compares the result from the client. If the result is the same, we can say the client is authorized, and vice versa.
Finally, the server sends the result to the client. If the client is authorized it can logon the server.
Please note, the challenge is always different each time, so the response should be not the same. User credential is also unique to each key and user.
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